Overseas owners slow sales of UK property amid tax changes, research finds – The Intermediary
16,520 UK residential properties were sold by overseas individuals in the year to 5th April 2026, down from 18,100 the year before, according to Bowmore Wealth Group.
Sales of UK prime residential properties by overseas owners slowed down, according to research by Bowmore Wealth Group.
16,520 UK residential properties were sold by overseas individuals in the year to 5th April 2026, down from 18,100 the year before.
Data from HMRC provided for Bowmore showed 70 wealthy overseas individuals sold UK residential properties worth more than £5m, compared to 80 in the previous year.
Bowmore said rising tax on buy-to-let (BTL) investment has made UK residential property less appealing to overseas and UK investors.
David Floyd, head of private clients at Bowmore Financial Planning, said: “It appears to be a period of readjustment for UK and overseas owners of UK property.
“Residential property, as an asset class, is having to face a number of challenges.
“The Renters’ Rights Act is just that the latest catalyst that encouraged investors to reduce their exposure to residential property in favour of equities or short-term bonds.”
Flloyd added: “Net yields on rental property in London are around 2% and over the decade UK house prices have fallen or stagnated in real terms.
“When you can get a risk free 4.6% on a five year Government bond it makes the net yields on residential property look very low.
“Those low net yields on buy-to-let property were justifiable when property prices were roaring away but not now.”
He said: “The administrative burden of being a landlord, as opposed to being a stock market investor, have always been quite onerous and the new Renters’ Rights Act has added an extra level of uncertainty into being a landlord.”
